Half of UK exporters report Brexit difficulties

The British Chambers of Commerce (BCC) has released a survey revealing that 49% of UK exporters report challenges adapting to Brexit. The number is even higher in the case of manufacturers.

For some businesses, the challenges amount to teething problems. They should be resolvable in the medium term, once appropriate processes have been established.

However, BCC Director General Adam Marshall cautioned that some firms face ‘existential’ challenges that could potentially cause them to stop selling to EU markets. 

Marshall warned that the planned implementation of additional Sanitary and Phytosanitary (SPS) checks in April and full customs checks on imports in July could aggravate the problem. 

In the red because of red tape

In the release, BCC Director of Trade Facilitation Liam Smyth says that companies have been challenged by the amount of red tape and substantial new costs involved with adjusting to those bureaucratic challenges.

He also pointed to challenges posed by new customs requirements and to provisions contained in the EU–UK Trade and Cooperation Agreement. Notably. UK firms exporting to the EU now potentially face additional tariff and VAT burdens. (According to the terms of the TCA, tariff-free trade depends on meeting Rules of Origin requirements.)

Don’t rely on official advice

Meanwhile, EU chief Brexit negotiator Michel Barnier insists that difficulties surrounding the Northern Ireland protocol are a natural consequence of Brexit, rather than the protocol itself. 

On the contrary, Barnier insists, “the protocol is the solution”.

On a more conciliatory note, Barnier conceded that “technical solutions” may be pursued to Brexit challenges. 

Barnier also suggested that the full implications of Brexit had not been fully explained to business.

Whatever the outcome of ongoing high-level policy discussion, it should be clear by now that businesses need to implement processes to manage uncertainty and efficiently overcome Brexit hurdles.  

In addition, any business that trades goods between the EU and UK needs to secure full clarity on all the potential Brexit implications for their operations. 

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There can be no denying that Brexit had caused real and serious challenges from businesses that trade between the UK and EU.

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